WSP Global Inc. (WSP.TO)

Are caught in the AI vs. software sell-off, with the market thinking WSP's clients will demand fewer services because clients can do more it themselves. She doesn't buy that. When you build a bridge, you can't use some AI program. This sector is under pressure. WSP recently reported a very strong quarter with higher margins. Are buying good companies, especially the US. Is surprised with this sell-off. WSP doesn't have a construction division, which can get a company into trouble. Are well-positioned in coming years for infrastructure building.

Focused on making acquisitions; disciplined acquirers and good integrators. No reason for that not to continue. Investors today want to see exposure to infrastructure projects and data centres. Not sure why stock's fallen.

Likes the construction business. Canadian government appears to be moving toward infrastructure spending, and WSP would capture some of that. If a massive project were announced, he'd be interested.

Might have more upside, but he wouldn't add here. Too cyclical for him.

One of the highest-quality ways to play global infrastructure spending. Pullback and volatility in the 1-year chart. Strategic push into power and energy. Acquisitions have focused on energy consulting. 10/10 on fundamentals. Long-term compounder.

Pressured by risks surrounding AI. Those risks are overblown, and are abating. In fact, it will benefit from AI. Though pricing structure will change, should lead to margin expansion. Participating in the data centre buildout.

Doesn't own any pureplay engineering stocks. Always tend to be too expensive. Bid up on future infrastructure needs. 

See his Top Picks, one of which has a division devoted to engineering services.

Global engineering and construction. Another case of AI causing baby to be thrown out with bathwater. Fat chance that AI is going to build the next nuclear reactor or dam or data centre. $17B in backlog. 

Big, global scale. Serial consolidator, and recent large acquisition makes it a much bigger player in US power and energy markets. Yield is 0.60%.

FMV trend is beautiful. 5-year compound balance sheet growth has been 16%, a nice ROE. Got ahead of itself and pulled back to FMV, very common. He'd love to buy if it pulled back to $165, which is 2x book and has been very stable support.

Has owned this 5 years and would buy this pullback. They grow by buying companies and organically. They enjoy big growth in their end markets; they bought a big power company last year with customers in the U.S. This sector has pressured this sector, because of AI fears. WSP argues this is not accurate and she agrees with them. WSP is using Microsoft AI tools to help their business.

WSP only provides breakdowns for its EMEIA division, which encompasses Europe, the Middle East, India, and Africa. This division represents roughly 30% of revenue (pre-acquisition). WSP maintains a solid presence in Qatar and the UAE. They estimate total regional exposure at 4-7% of revenue. While this presents some risk, it's unlikely to be material given the nature of long-term contracts that can take years to convert into revenue. Unlock Premium - Try 5i Free

Excellent way to go upstream from the data centre buildout. Lots of work in its power & electrical segment for data centres. Global. Put this on your radar. Massive $17B order backlog, even if they don't win contracts in Alberta.

Core holding. Great executional track record with M&A and organic growth. CAGR of 20%. With the global trade war unleashed, countries are looking to spend internally on things like infrastructure. This is where WSP shines. Yield is 0.68%.